American Standard Companies, Inc. gapped up Thursday morning on
news that Morgan Stanley (NYSE:MWD) increased its weighting of
ASD from 1% to 2% in Morgan's U.S. model portfolio. Shares of ASD
traded to an all-time high of $66.80 before pulling back to a
close of $66.63 on volume of 294,000 shares. The stock has been
trending higher on average volume so ASD may be able to continue
to set new highs. From a technical standpoint, ASD has support at
Wednesday's intra-day high of $66 with additional support at
$65.56, the 10-dma. Resistance is Thursday's intra-day high of
$66.80 and then $68. A bounce off of $66 or a breakout above
$66.80 on midday volume greater than 250,000 shares may be
possible entry points. We have moved our stops up to $64.50 to
lock in additional gains.